Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Pollard Banknote Limited (PBL-T) says it’s buying Schafer Systems, Inc., a global provider of lottery ticket dispensers and play stations for US$23.5-million in cash.
"Schafer has a long history of profitability and the acquisition is expected to be accretive to Pollard Banknote's net income," the company stated.
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RMMI Corp. (RMMI-CN) says its Rocky Mountain Marijuana Inc. subsidiary has signed a medical cannabis supply agreement with Namaste Technologies Inc.’s (N-X) subsidiary Cannmart Inc. It says Cannmart will purchase medical cannabis from Rocky Mountain to offer in its online medical-cannabis marketplace.
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Hydrogenics Corporation (HYGS-Q; HYG-T) says it will supply six heavy-duty fuel cell power modules to GTI and TransPower for a set of Class 8 Navistar drayage trucks scheduled to be deployed in southern California early next year.
“The trucks are part of the California Air Resources Board’s ‘California Climate Investments’ program, meant to enable the acceleration of low-carbon technology in commercial trucking applications,” the company said.
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Automotive Properties Real Estate Investment Trust (APR.UN-T) is buying automotive dealership properties from AutoCanada Inc. (ACQ-T) for a total purchase price of approximately $55.5-million (the “Transaction”).
The REIT also announced that it has entered into an agreement to sell 5.1 million units on a bought deal basis at a price of $10.80 per unit for gross proceeds of approximately $55.1-million. The REIT said intends to use the net proceeds from the offering to repay the debt incurred to fund the transaction and for general trust purposes.
“We are pleased to enter into our first acquisition agreement with AutoCanada, one of Canada’s largest automotive retailers. This transaction highlights our focus on partnering with leading automotive dealership operators that are active in consolidating the industry,” said Milton Lamb, President and CEO of the REIT.
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Namaste Technologies Inc. (N-X) says it’s raising $45-million in a bought-deal financing. It has a letter of engagement with Eight Capital, which has agreed to purchase, as co-lead underwriter and joint bookrunner with Canaccord Genuity Corp., 15 million units of the company at $3 each.
Each unit includes a common share of the company and one-half of one common share purchase warrant with an exercise price of $3.50 for a period of 48 months.
The company said intends to use the net proceeds to fund inventory and for working capital and general corporate purposes.
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Emerald Health Therapeutics, Inc. (EMH-X) says it has agreed to purchase from Emerald Health Hemp Inc. (EHH) CBD-containing hemp biomass for extraction into CBD oil.
"EHH has established agreements to purchase approximately 500 acres of harvested hemp chaff, plant material consisting mainly of flower and leaf, in Manitoba and Prince Edward Island in 2018, with a plan to expand field operations in 2019," the company stated.
In conjunction with Bill C-45, Health Canada recently issued an exemption to holders of Industrial Hemp licenses to begin collecting, drying, storing and transporting the chaff of hemp, the company said. Farmers will be able to sell hemp chaff to licensed processors under Bill C-45 after Oct. 17.
“We see non-smoked, non-psychoactive CBD consumption as a major growth opportunity in both the medical and adult-use market in Canada, and our Factors Group alliance uniquely positions us with the largest biomass extraction and softgel encapsulation facility in Canada to produce value-added products to serve this market,” said Chris Wagner, CEO of Emerald.